Brazil M&A: Valuations Up, Fees Fall
Brazil is on a path for record-breaking M&A volume and sky high valuations this year, but advisory fees are lagging.
by Taina Rosa
Brazilian M&A is expected to shatter the volume record set
in 2007. Valuations in some of the frothier sectors are close
to double where they were just a few years ago, but advisors
are not seeing the benefit.
Still, advisors say they are having no trouble filling their
pipelines. And while valuations have risen significantly, the
factors pushing them up show no sign of abating in the next
New market participants such as global private equity firms
and national champions, alongside cheap access to capital, will
continue to fuel M&A in the coming years, according to
"M&A will be more active in 2011. The number of
transactions will increase and as the Brazilian economy
continues to perform we will see more companies using M&A
as a strategy for growth," Marco Gonçalves, head of
M&A at São Paulo-based BTG Pactual, tells
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